Indiana 2024 Regular Session

Indiana House Bill HB1245 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1245
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-16-13-12.5; IC 22-2; IC 22-5-3-3.
7	7	Synopsis: Worker classification on public projects. Requires a
8	8	contractor in any contractor tier except for tier 1 (a general or prime
9	9	contractor) on a: (1) public works project; or (2) tax advantaged
10	10	construction project; to complete a weekly report of wages and hours
11	11	of the contractor's employees who work on the project. Requires the
12	12	department of labor to employ an investigator to investigate complaints
13	13	of employee misclassification. Provides that the investigator shall be
14	14	located at the Marion County prosecutor's office. Extends certain
15	15	protections to an employee who reports, complains, or testifies about
16	16	employee misclassification.
17	17	Effective: July 1, 2024.
18	18	Moseley
19	19	January 9, 2024, read first time and referred to Committee on Employment, Labor and
20	20	Pensions.
21	21	2024 IN 1245—LS 6175/DI 137 Introduced
22	22	Second Regular Session of the 123rd General Assembly (2024)
23	23	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
24	24	Constitution) is being amended, the text of the existing provision will appear in this style type,
25	25	additions will appear in this style type, and deletions will appear in this style type.
26	26	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
27	27	provision adopted), the text of the new provision will appear in this style type. Also, the
28	28	word NEW will appear in that style type in the introductory clause of each SECTION that adds
29	29	a new provision to the Indiana Code or the Indiana Constitution.
30	30	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
31	31	between statutes enacted by the 2023 Regular Session of the General Assembly.
32	32	HOUSE BILL No. 1245
33	33	A BILL FOR AN ACT to amend the Indiana Code concerning state
34	34	and local administration.
35	35	Be it enacted by the General Assembly of the State of Indiana:
36	36	1 SECTION 1. IC 5-16-13-12.5 IS ADDED TO THE INDIANA
37	37	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
38	38	3 [EFFECTIVE JULY 1, 2024]: Sec. 12.5. (a) This section applies to a
39	39	4 contractor in a contractor tier on a public works project, not
40	40	5 including a tier 1 contractor.
41	41	6 (b) This section applies only to a public works contract entered
42	42	7 into after June 30, 2024.
43	43	8 (c) As used in this section, "department" refers to the
44	44	9 department of labor created by IC 22-1-1-1.
45	45	10 (d) As used in this section, "Form WH-347" refers to the weekly
46	46	11 report of wages and hours of individuals employed on construction
47	47	12 projects prescribed by the Wage and Hour Division of the United
48	48	13 States Department of Labor.
49	49	14 (e) As used in this section, "report" refers to either of the
50	50	15 following:
51	51	16 (1) Form WH-347.
52	52	17 (2) A form prescribed by the department that is the equivalent
53	53	2024 IN 1245—LS 6175/DI 137 2
54	54	1 of Form WH-347.
55	55	2 (f) Each week, a contractor shall complete and maintain in its
56	56	3 files a report.
57	57	4 (g) At the request of any of the following, a contractor shall
58	58	5 produce the report for inspection and verification:
59	59	6 (1) The public agency that has contracted for the public works
60	60	7 project.
61	61	8 (2) The department.
62	62	9 (h) The department shall prescribe a form that is the equivalent
63	63	10 of Form WH-347. The form must require that an agent of the
64	64	11 contractor completing the form certify the information on the form
65	65	12 under the penalties for perjury. The department may provide that
66	66	13 payroll records normally maintained by a contractor satisfy the
67	67	14 requirement of this section if those records contain the information
68	68	15 required under this section.
69	69	16 SECTION 2. IC 22-2-15-2.5 IS ADDED TO THE INDIANA CODE
70	70	17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
71	71	18 1, 2024]: Sec. 2.5. (a) The department shall employ an investigator
72	72	19 to conduct investigations into questions and complaints concerning
73	73	20 employee misclassification as described in this chapter. The
74	74	21 investigator has the same inspection and enforcement powers that
75	75	22 the department has in enforcing the labor laws of Indiana, and
76	76	23 shall report to the department concerning the investigations
77	77	24 described in this section.
78	78	25 (b) The investigator's office shall be located at the office of the
79	79	26 prosecuting attorney in Marion County and shall assist prosecutors
80	80	27 with the investigation of complaints described in subsection (a).
81	81	28 (c) The department and the office of the prosecuting attorney in
82	82	29 Marion County shall coordinate in the implementation of this
83	83	30 section.
84	84	31 (d) The investigator shall keep any information obtained during
85	85	32 the course of an investigation under this section confidential, if
86	86	33 required under Indiana law.
87	87	34 (e) The department may adopt rules under IC 4-22-2 to
88	88	35 implement this section.
89	89	36 SECTION 3. IC 22-2-19 IS ADDED TO THE INDIANA CODE AS
90	90	37 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
91	91	38 1, 2024]:
92	92	39 Chapter 19. Wage Reporting on Tax Advantaged Construction
93	93	40 Projects
94	94	41 Sec. 1. This chapter applies to a tax advantaged construction
95	95	42 project funded in whole or in part through a tax advantage granted
96	96	2024 IN 1245—LS 6175/DI 137 3
97	97	1 after June 30, 2024.
98	98	2 Sec. 2. As used in this chapter, "construction" includes any of
99	99	3 the following:
100	100	4 (1) The alteration of a structure.
101	101	5 (2) The building of a structure.
102	102	6 (3) The reconstruction of a structure.
103	103	7 (4) The renovation of a structure.
104	104	8 (5) The expansion of a structure.
105	105	9 (6) The demolition of a structure.
106	106	10 (7) The improvement of a structure.
107	107	11 (8) The repair of a structure.
108	108	12 (9) The maintenance of a structure.
109	109	13 Sec. 3. As used in this chapter, "contractor" refers generally to
110	110	14 a contractor in a contractor tier, not including a tier 1 contractor.
111	111	15 Sec. 4. As used in this chapter, "contractor tier" has the
112	112	16 meaning set forth in IC 5-16-13-4.
113	113	17 Sec. 5. As used in this chapter, "department" refers to the
114	114	18 department of labor created by IC 22-1-1-1.
115	115	19 Sec. 6. As used in this chapter, "Form WH-347" refers to the
116	116	20 weekly report of wages and hours of individuals employed on
117	117	21 construction projects prescribed by the Wage and Hour Division
118	118	22 of the United States Department of Labor.
119	119	23 Sec. 7. As used in this chapter, "political subdivision" has the
120	120	24 meaning set forth in IC 36-1-2-13.
121	121	25 Sec. 8. As used in this chapter, "public entity" refers to any of
122	122	26 the following:
123	123	27 (1) The state.
124	124	28 (2) A political subdivision.
125	125	29 (3) An instrumentality of the state or a political subdivision
126	126	30 (including a nonprofit corporation).
127	127	31 (4) A body corporate and politic established by law.
128	128	32 (5) An entity for a tax increment financing area described in
129	129	33 section 11(1) of this chapter.
130	130	34 Sec. 9. As used in this chapter, "report" refers to either of the
131	131	35 following:
132	132	36 (1) Form WH-347.
133	133	37 (2) A form prescribed by the department that is the equivalent
134	134	38 of Form WH-347.
135	135	39 Sec. 10. As used in this chapter, "tax advantage" refers to any
136	136	40 of the benefits described in section 11 of this chapter granted by a
137	137	41 public entity.
138	138	42 Sec. 11. As used in this chapter, "tax advantaged construction"
139	139	2024 IN 1245—LS 6175/DI 137 4
140	140	1 refers to the following:
141	141	2 (1) Construction in a geographic area including:
142	142	3 (A) an economic development area;
143	143	4 (B) a sports development area;
144	144	5 (C) a community revitalization area;
145	145	6 (D) a certified technology park;
146	146	7 (E) a tax increment financing district; and
147	147	8 (F) other similar areas or districts;
148	148	9 designated by a public entity as an allocation area or in which
149	149	10 tax increment property tax, adjusted gross income tax, or
150	150	11 gross retail and use tax revenue is dedicated to provide
151	151	12 improvements or to retire bonds issued to pay for
152	152	13 improvements.
153	153	14 (2) Construction for which an exemption, deduction, credit,
154	154	15 preferential rate, or other tax benefit is granted under
155	155	16 IC 6-1.1-12.1, IC 6-1.1-12.4, IC 6-1.1-12.5, IC 6-1.1-12.6, or
156	156	17 IC 6-3.1.
157	157	18 (3) Construction financed in any part with the proceeds of
158	158	19 bonds exempt from state taxation or issued by a public entity.
159	159	20 (4) Construction in an enterprise zone (IC 5-28-15).
160	160	21 (5) A rail project or project (as defined in IC 5-1.3-2-14 or
161	161	22 IC 8-5-15-1).
162	162	23 Sec. 12. Any agreement between a person and public entity
163	163	24 granting a tax advantage must provide that:
164	164	25 (1) the tax advantage is conditioned on and subject to the
165	165	26 provisions of this chapter; and
166	166	27 (2) all construction contracts at every contractor tier:
167	167	28 (A) entered into; and
168	168	29 (B) financed in whole or in part through the tax advantage;
169	169	30 must provide that the provisions and requirements of this
170	170	31 chapter are incorporated into the contract.
171	171	32 Sec. 13. Each week, a contractor shall complete and maintain in
172	172	33 its files a report.
173	173	34 Sec. 14. At the request of any of the following, a contractor shall
174	174	35 produce the report for inspection and verification:
175	175	36 (1) The public entity that has:
176	176	37 (A) contracted directly for the tax advantaged
177	177	38 construction; or
178	178	39 (B) granted the tax advantage through which the tax
179	179	40 advantaged construction is financed in whole or in part.
180	180	41 (2) The department.
181	181	42 Sec. 15. (a) If a public entity suspects that a violation of section
182	182	2024 IN 1245—LS 6175/DI 137 5
183	183	1 13 of this chapter has occurred, the public entity shall require the
184	184	2 contractor to remedy the violation not later than thirty (30) days
185	185	3 after the public entity notifies the contractor of the violation. The
186	186	4 notification to the contractor must be signed by the chief executive
187	187	5 officer of the public entity and sent by a method that enables the
188	188	6 public entity to verify receipt of the notice by the contractor.
189	189	7 (b) During the thirty (30) day period described in subsection (a),
190	190	8 the contractor may continue to work on the construction project.
191	191	9 If the contractor fails to remedy the violation within the thirty (30)
192	192	10 day period, the public entity shall find the contractor not
193	193	11 responsible and determine the length of time the contractor is
194	194	12 considered not responsible by the public entity.
195	195	13 (c) In making the determination of the length of time a
196	196	14 contractor is not responsible under subsection (b), the public entity
197	197	15 shall consider the severity of the violation. The period during
198	198	16 which a contractor is considered not responsible:
199	199	17 (1) may not exceed forty-eight (48) months; and
200	200	18 (2) begins on the date of substantial completion of the
201	201	19 construction project.
202	202	20 Sec. 16. The department shall prescribe a form that is the
203	203	21 equivalent of Form WH-347. The form must require that an agent
204	204	22 of the contractor completing the form certify the information on
205	205	23 the form under the penalties for perjury. The department may
206	206	24 provide that payroll records normally maintained by a contractor
207	207	25 satisfy the requirement of this chapter if those records contain the
208	208	26 information required under this chapter.
209	209	27 SECTION 4. IC 22-5-3-3, AS AMENDED BY P.L.149-2016,
210	210	28 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
211	211	29 JULY 1, 2024]: Sec. 3. (a) An employee of a private employer that is
212	212	30 under public contract may report in writing the existence of:
213	213	31 (1) a violation of a federal law or regulation;
214	214	32 (2) a violation of a state law or rule;
215	215	33 (3) a violation of an ordinance of a political subdivision (as
216	216	34 defined in IC 36-1-2-13); or
217	217	35 (4) the misuse of public resources;
218	218	36 concerning the execution of public contract first to the private
219	219	37 employer, unless the private employer is the person whom the
220	220	38 employee believes is committing the violation or misuse of public
221	221	39 resources. In that case, the employee may report the violation or misuse
222	222	40 of public resources in writing to either the private employer or to any
223	223	41 official or agency entitled to receive a report from the state ethics
224	224	42 commission under IC 4-2-6-4(b)(2)(J) or IC 4-2-6-4(b)(2)(K). If a good
225	225	2024 IN 1245—LS 6175/DI 137 6
226	226	1 faith effort is not made to correct the problem within a reasonable time,
227	227	2 the employee may submit a written report of the incident to any person,
228	228	3 agency, or organization.
229	229	4 (b) For having made a report under subsection (a), an employee may
230	230	5 not:
231	231	6 (1) be dismissed from employment;
232	232	7 (2) have salary increases or employment related benefits
233	233	8 withheld;
234	234	9 (3) be transferred or reassigned;
235	235	10 (4) be denied a promotion that the employee otherwise would
236	236	11 have received; or
237	237	12 (5) be demoted.
238	238	13 (c) An employee of a private employer may report the existence
239	239	14 of employee misclassification by the private employer to any
240	240	15 official or agency entitled to receive a report concerning possible
241	241	16 employee misclassification.
242	242	17 (d) An employee who:
243	243	18 (1) reports the existence of employee misclassification;
244	244	19 (2) files a complaint concerning employee misclassification;
245	245	20 (3) institutes or causes to be instituted any proceeding related
246	246	21 to employee misclassification; or
247	247	22 (4) testifies or will testify in a proceeding concerning employee
248	248	23 misclassification;
249	249	24 may not be discharged or discriminated against in the manner
250	250	25 described in subsection (b).
251	251	26 (c) (e) Notwithstanding subsections (a) through (b), (d), an
252	252	27 employee must make a reasonable attempt to ascertain the correctness
253	253	28 of any information to be furnished and may be subject to disciplinary
254	254	29 actions for knowingly furnishing false information, including
255	255	30 suspension or dismissal, as determined by the employer. However, any
256	256	31 employee disciplined under this subsection is entitled to process an
257	257	32 appeal of the disciplinary action as a civil action in a court of general
258	258	33 jurisdiction.
259	259	34 (d) (f) An employer who violates this section commits a Class A
260	260	35 infraction.
261	261	2024 IN 1245—LS 6175/DI 137